What are the signs of eCommerce fraud?

Although the methods that fraudsters use when carrying out various methods of eCommerce fraud are conniving in nature, there are a few dependable signs that merchants can be on the lookout for in order to detect eCommerce fraud and stop it in its tracks.

First-time shoppers

While it’s important not to steer away legitimate first-time customers, it’s key that eCommerce businesses properly vet shoppers making their initial purchase. This is because fraudsters will often input invalid details (such as a false name or fake shipping address) when entering their personal data. Taking the time to verify a user’s data can help your organisation avoid security pitfalls down the line.

Repeated declined transactions

Banks and card issuers will decline a transaction when signs of fraud are present, such as an incorrect card number or mismatched user data. Take it as a sign when you see multiple declined transactions present on your organisation’s eCommerce platform.

The use of different credit cards

This point highlights the importance of verifying user data in general. Any inconsistencies — including the use of multiple credit cards tied to the same shipping or IP address — should be seen as a red flag. The same goes for transactions made with the same credit card that are tied to different shipping addresses.

eCommerce fraud prevention strategies and best practices 

As we’ve explored, various types of eCommerce fraud include several basic elements that online retailers must beware of. How can eCommerce businesses protect themselves against each of the aforementioned types of fraud, then? The use of a simple checklist is a good place to get started.

Here are a few best practices to include and implement in your organisation’s fraud management strategy.

• Implement multi-factor authentication (MFA) protocols: In case your password becomes compromised, MFA serves as a second layer of security and ensures that your account remains secure. MFA can be applied through the use of SMS or a dedicated authenticator mobile app.
• Prioritise security audits: With the help of internal or external experts, vendors can assess the security of their eCommerce platform and form a clear picture of any exposure to data leakage and various forms of eCommerce fraud. 
• Achieve and maintain PCI compliance: Before online merchants accept online credit card payments, it’s crucial to achieve compliance with the Payment Card Industry Data Security Standards (PCI DSS), an international standard established to promote the safety and security of customer financial data and ensure that retailer websites meet the criteria for accepting payments online.

Here’s how to avoid eCommerce fraud with WorldFirst

As your business scales, so does its attack surface. The good news? By equipping staff with the proper knowledge of online fraud techniques and a checklist of fraud prevention strategies, it’s possible for eCommerce businesses to avoid today’s prevalent eCommerce fraud attacks.

By using WorldFirst, your eCommerce business can safely extend your business reach into new territories. Access free, locally-based currency accounts to collect overseas sales revenue in local currency from marketplaces and payment gateways like Amazon, eBay, Stripe, and more.

Find out more about WorldFirst and learn how to limit your organisation’s risk of eCommerce fraud.